Thousands of Tata Steel workers to accept cuts to pensions in return for commitments on jobs

Thousands of Tata Steel workers will accept cuts to their pensions in return for commitments on their jobs.

Workers from the Community, Unite and GMB unions overwhelmingly backed proposals under which the heavily indebted British Steel pension scheme will close to future accrual. Under the plan, Tata will invest £1bn in its steel sites across the UK while workers move to a less generous pension scheme.

Looking to the future: Workers from the Community, Unite and GMB unions overwhelmingly backed proposals

However, Tata has said the investment also depends on it separating the pension scheme and its £1-2bn deficit from the rest of the business. The agreement follows huge uncertainty for workers after Tata Steel announced last March it was reviewing its UK businesses as it battled global oversupply of steel and weak demand.

The Indian-owned company has 11,000 staff in the UK at sites including Port Talbot, Rotherham and Hartlepool.

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Tony Brady, national officer for Unite, said the past year’s uncertainty had been ‘hellish’. He added: ‘[Workers’] sacrifices must be repaid by Tata Steel honouring its commitments on investment and job security.’

Tata has unveiled a new high-tech production line as part of a £20m investment in one of its UK sites. The robotic welding line in Wednesfield, West Midlands, trebles the plant’s capacity to produce special sheets of steel for car door panels and other uses.